superannuation and trusts

The SMSF Association has strongly urged for an immediate overhaul of the Compensation Scheme of Last Resort (CSLR). This call comes in response to the recently released FY27 Initial Levy Estimate of $137.5 million, which the association states confirms the urgent need for changes to the CSLR. The significant levy estimate highlights the financial implications and the pressing nature of the CSLR's current structure and operation.

Following the Australian Securities and Investments Commission's (ASIC) latest Review of SMSF Establishment Advice (Report 824), the SMSF Association is reinforcing its commitment to higher standards within the SMSF advice sector. The association views ASIC's findings as a critical reminder for the SMSF industry to maintain a strong focus on delivering quality advice and adhering to best practices.

The SMSF Association has acknowledged the long-awaited final rulings from the Australian Taxation Office (ATO) on non-arm's length income (LCR 2021/2) and contributions (TR 2010/1). These rulings are said to provide much-needed clarity on several critical issues within the SMSF space. However, the association has also indicated that despite the welcome clarity, there remain missed opportunities in the ATO's approach.

In the wake of the Shield and First Guardian collapses, there is a call for improved consumer protections when individuals switch to Self-Managed Super Funds (SMSFs). This highlights potential risks associated with rollovers and the need for greater oversight and security for those moving their superannuation into an SMSF structure.

Self-Managed Super Funds (SMSFs) are presented as a suitable vehicle for managing the superannuation of minor children, particularly those engaged in part-time or seasonal work. This suggests SMSFs can offer cost-effective solutions for holding and growing the superannuation assets of younger individuals.

The average processing time for rollover requests from public offer super funds to Self-Managed Super Funds (SMSFs) is exceeding the regulatory timeframes. This indicates a potential inefficiency or bottleneck in the superannuation system that impacts the smooth transfer of funds into SMSFs.